What’s New in VS Code 1.108? Terminal, Git, and AI Agent Enhancements Explained

Visual Studio Code 1.108 (December 2025) Release Highlights

Version 1.108 introduces a set of productivity‑focused updates for the integrated terminal, Git integration, and AI‑driven Copilot agents.

Terminal suggestion behavior

The terminal suggestion feature remains enabled by default but now only displays suggestions when the user presses Ctrl+Space.

The suggestion panel’s status bar adds larger buttons and links for quick access.

Auto‑completion for npm and git commands has been refined.

GPU‑accelerated terminal renderer

The built‑in GPU renderer (enabled by default) now supports roughly 800 additional custom characters and glyphs, covering the majority of glyph sets found in other terminals.

Underlines used by editors such as Vim and Emacs to indicate spelling or syntax errors are rendered more clearly.

When the terminal window is resized, the current row and column counts are displayed.

AI agent enhancements

Introduced agent skills : folders that contain commands, resources, and scripts which GitHub Copilot can load to perform specific tasks.

The “Agent Session” view now supports improved keyboard navigation, clearer file‑change indicators, and faster access via the quick‑select menu.

Git workflow improvements

When using “Blame” to locate the commit that last modified a line, a new option allows whitespace changes to be ignored, helping differentiate functional changes from mere reformatting.

A new setting disables hover tooltips in the Git blame editor for a less noisy experience.

Issue‑tracker cleanup

Throughout 2025 the VS Code issue tracker saw a reduction of 5,951 unresolved issues and 1,203 issues were triaged, reflecting ongoing maintenance effort.

Availability

The update can be downloaded from the official VS Code website for Windows, macOS, and Linux. A web‑based version is also available at https://vscode.dev, which supports editing local files and accessing GitHub or Azure repositories.